UNICEF’s Supply Function and

Work in Supply of Medicines

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UNICEF structure

• UNICEF has four organizational

groups: external relations,

management, programmes and

resource mobilisation.

• Supplies are an integral part of

programmes.

• 895 staff

• 133 nationalities

• 101 countries

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The Supply Community

4

Where we are

Supply Division: Copenhagen, New York

Supply hubs: Panama, Dubai, Shanghai Field warehouses by

value of inventory, in US$’

Despite the progress in child survival, 19,000 children

under 5 die every day, mostly from preventable causes

Causes of death among children under 5 globally

35%

7%

18% 11%

5%

2%

2%

1%

18%

Source: Committing to Child Survival: A Promise Renewed. 2012 Progress Report

http://www.apromiserenewed.org/files/APR_Progress_Report_2012_final_web.pdf

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Strategic essential supplies

Midwifery kits

Vaccines

AD syringes

Hand pumps

Water purification tablets

ORS

Zinc

Vaccines

AD syringes

Co-trimoxazole

Amoxicillin

Diagnostic kits

Bed nets

Antimalarials

Antiretrovirals

Diagnostic kits

Hand pumps

Water purification tablets

De-worming tablets

RUTF

Vitamin A

Vaccines

AD syringes

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Supplies then and now

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Major commodity groups 2011

(millions of US$)

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Our strategic focus

• Support end-to-end supply issues

• Influencing global markets

• Emergency response

• Product and technology innovation

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End to end supply chain

M&E

Definition of Need Budgeting and planning Procurement

Delivery &

Clearance Inspection

Warehousing,

distribution, & re-order

Utilisation by

end users M & E

Planning Procurement Logistics & Delivery

• Focus on strategic supplies

• Forecasting, price information and innovative

financing

• Targeted procurement strategies, support for country

offices and partners

• Global freight forwarding contract

• Inventory visibility in 357 warehoused through ERP

• Logistic training and support

• Increasing focus on end-user feedback and inclusion

of supply component in M&E of programmes

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Influencing global markets

Strategies to Influence

Markets

- Innovative financing

- Forecasting

- Transparency

- Strategic placement of

orders

- Setting quality standards

- Innovation

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Emergencies: speed and scale

The scale and severity of humanitarian situations continues to rise. It is predicted that

by 2015, climate-related disasters could affect 375 million people annually.

Response guided by the Core Commitments for Children in Emergencies (CCCs),

UNICEF’s central policy to uphold the rights of children affected by humanitarian crisis

In 2011 UNICEF responded to 292 humanitarian situations in 80 countries

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Product and technology innovation

www.unicefinnovation.org

Procurement of Medicines

Procurement of Medicines

Midwifery kits

Vaccines

AD syringes

Hand pumps

Water purification

tablets

ORS

Zinc

Vaccines

AD syringes

Co-trimoxazole

Amoxicillin

Diagnostic kits

Bed nets

Antimalarials

Antiretrovirals

Diagnostic kits

Hand pumps

Water purification tablets

De-worming tablets

RUTF

Vitamin A

Vaccines

AD syringes

2010 2011 2012 (*) Total

Antiretrovirals 77.6 117.4 79.7 274.7

Antimalarials 37.0 26.5 16.6 80.0

Other antibacterials (incl. CTX) 17.7 12.2 17.5 47.4

Beta Lactams (incl. AMX) 11.0 5.6 10.7 27.2

Water & electrolytes (incl. ORS) 9.2 10.4 7.0 26.4

Minerals & vitamins (incl. Zinc) 12.3 3.9 3.5 19.6

Anthelminthics 8.9 2.0 4.6 15.4

Total 173.7 178.0 139.6 490.7

Value (USD)

(*) Up to mid-Sep 12

Purchases by Materia Group

(top-7)

Procurement of Medicines

Procurement of Medicines: Funding

2011

85% of orders for Essential Medicines was through Programme

87% of orders for ARVs and Antimalarials was through Procurement Services

Main Sources of Funding for deliveries through Programme ($77M, of which $59M for

medicines and $18 for kits containing medicines):

European Commission: 16%

UNICEF Regular Resources: 11%

ZIMB ERP (UNDP): 10%

DFID (9%), Canada (7%), Japan (5%)

Over sixty other sources.

Main Sources of Funding for deliveries through Proc. Services Orders ($132M):

Global Fund: 66%

UNITAID: 19%

WB: 5%

Other: 10% - Includes procurement for MoH in 20 countries

Procurement of Medicines

What are the main programmes for which medicines are procured

Primary Health programmes, including disease-specific campaigns

- Essential Medicines for PHC (including kits), deworming and Vit A

HIV/AIDS

- ARVs, Cotrimoxazole and medicines to treat opportunistic infections

Emergencies

- Interagency Emergency Health Kit, medicines for diarrhea,

medicines used in Severe Acute Malnutrition, UNICEF Emergency

Supply List (ESL)

Procurement strategies and operation plans for delivery are developed

to address market and programme characteristics

Procurement for Primary Health Programmes

In past years, UNICEF has been engaged in three large initiatives to

supply the public health system in countries facing challenges to meet

needs

Zimbabwe

Started in 2009. Supply of Kits for Primary Health Centres. Health Transition Fund

in place to strengthen health systems and help abolish healthcare user fees for

children and women. Phase-out planned in 2013.

Sierra Leone

Started in 2010. Procurement of medicines for Free Care Initiative and support to

MOH to establish capacity in PSM. Agreement between MoH and service provider

to help build the National Pharmaceutical Procurement Unit (NPPU) / CMS.

UNICEF will be phasing out from the beginning of 2013.

Malawi

Started in late-2011. Procurement of package of essential health supplies for

PHCs to cover gap in capacity by CMS while undergoing reforms.

USAID/DELIVER managing logistics and capacity strengthening. Procurement

support until mid-2013, including engagement with Malawian manufacturers.

Priority Medicines for Women and Children

1st WHO Model List of Essential Medicines for

Children, 2007

2nd WHO Model List of Essential Medicines for

Children, 2010

Recommendations for management of common

childhood conditions, 2012

3rd WHO Model List of Essential Medicines for

Children, 2011

United Nations Commission on Life-Saving Commodities for Women and Children

http://www.who.int/maternal_child_adolescent/documents/management_childhood_conditions/en/index.html

http://www.who.int/medicines/publications/emp_mar2012.1/en/index.html

http://www.everywomaneverychild.org/resources/un-commission-on-life-saving-commodities

http://www.unaids.org/believeitdoit/the-global-plan.html

Global Plan towards the elimination of new HIV infections among children by 2015, and keeping their

mothers alive

EVIDENCE AND ADVOCACY

ACTION

OTHER AREAS OF WORK

• Manufacturers Meeting in September- Priorities and Opportunities

• Engagement in application of Model QA System for Procurement Agencies to

facilitate interaction with NRAs and national procurement agencies.

• Global monitoring of availability (ARV Coordinated Procurement Planning, ACT

Task Force)

• Global Research in Paediatrics (GRiP) project: availability of medicines listed in

the WHO Model Formulary for Children 2010 and Essential Medicines List for

Children 2011 in an ‘age-appropriate’ formulation within the larger global

commercial markets.

• Introduction of IEHK 2011 (including revision of PEP module)

• Continued participation in High-Level Committee on Management Procurement

Network (HLCM PN): working groups on UNGM, Procurement Harmonization

and Sustainable Procurement.

• Monitoring of temperature in international shipments- challenges to establish

QA system.

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Partnerships for children

Thank you

www.unicef.org/supply

Thank you www.unicef.org/supply